The Gulf Projects Index has fallen 0.5 per cent in the week ending 18 September, down $17bn from its peak of $3470bn.
This is due to a 2 per cent week-on-week fall in the value of Saudi Arabias projects market, the regions largest. The $24.5bn fall came as Riyadh reviews its project spending and considers cutting non-essential projects and scaling back spending on others.
$24.5bn week-on-week contraction in Saudi Arabias projects market
3.9 per cent Saudi Arabia project market year-on-year growth
$5bn budget for new Kipco real estate project in Kuwait
The kingdoms year-on-year growth rate has slipped to 3.9 per cent, down from double figures earlier in 2015. A sharper slowdown is now expected for 2016 and 2017, according to regional projects tracker MEED Projects.
The bright spot is in the utilities sector, where a $3bn integrated solar combined-cycle power plant is planned in Taiba.
|Project updates this week|
|Project name||Project status|
|Kuwait||Daiya mixed-use real estate project||Study|
|Oman||Oman National Railway: segment 4A Haima-Amal||Prequalification|
|Saudi Arabia||Safaniyah Field ppgradation: phase 2||Execution|
|Saudi Arabia||Taiba integrated solar combined-cycle power plant||Main contract bid|
|For further information visit www.meedprojects.com/home|
Kuwait saw its projects market expand by 2.1 per cent, or $5.1bn. The main driver for the increase was the announcement of a $5bn real estate development by Kuwait Projects Company.
Bahrain grew 1.3 per cent as a result of private real estate projects, while Iran saw a 0.6 per cent rise in the value of its projects market as it plans out its post-sanctions investment programme.
|Upcoming tender deadlines|
|UAE||Dubai Electricity & Water Authority||Hassyan 400kV substation||30-Sep|
|Qatar||Kahramaa||Phase 13 transmission and distribution programme||01-Oct|
|UAE||Dubai Municipality||Jebel Ali sewage treatment plant||18-Oct|
|Saudi Arabia||Saudi Electricity Company/Saudi Aramco||Fadhili independent power project||01-Nov|
|UAE||Roads & Transport Authority||Route 2020 metro extension||06-Dec|
|For further information visit www.meed.com/news/tenders|
Qatars market grew 0.2 per cent due to continued investment in the transport sector. However, year-on-year growth remains the lowest in the GCC, at 2.6 per cent, as World Cup infrastructure and leisure schemes get under way, and post-tournament plans remain unclear.
In the UAE, the projects market held steady despite $3bn in new schemes, mainly in the real estate sector. Project completions and inactive schemes cancelled out the gains, although the market is still up 13.9 per cent year-on-year.
Iraqs index fell another 0.1 per cent on delayed housing projects as Baghdad struggles to cover its budget deficit.